03/11/2026
Good Afternoon Superior Finance Family.
The Reserve Bank of Australia has today increased the cash rate by 0.25% to 4.85%.
This is the fifth rate rise in 2026 and puts the cash rate at its highest since late 2008. Whilst the money markets were expecting this decision, it was by a majority of the members voting 6-3 in favour of the rate rise.
The RBA cited persistent, broadly-based inflation, higher commodity and fuel prices from the Middle East conflict, and tighter-than-expected domestic capacity pressures. Inflation is now projected to remain elevated through much of 2027.
The next meeting announcement will be on Tuesday 8th December, when borrowers will be starting to feel the pinch from this increase and the Christmas Seasonal spend.
Over the last few days it has widely reported that house prices have fallen for the 7th consecutive month. Down 8.1% since March (average across all capital cities).
However, with property prices coming down, the interest rate rises will largely wipe out the affordability gains by lowering borrowing capacity.
What does this mean for you?
To gain a personal insight into what your borrowing capacity is then please get in touch with us and we can talk through your specific situation.
Alex - 0413 921 003
Wayne - 0407 021 988
